1. Smart Packaging Technologies & Solutions to Preserve Authenticity
An Overview
T. Merchant1
1YPB Group Ltd, 388 Exchange Tower, 39th Floor, Sukhumvit Rd.
Klongtoey, Bangkok, 10110 Thailand
Author’s email: tmerchant@ypbsystems.com
Abstract
Smart packaging can take on several meanings with respect to authenticity. We can define “smart”
in several ways. Prior to modern times, when you heard someone talk about “smart,” it probably
meant something along the lines of being clever, intelligent or knowledgeable, all complimentary
terms. Negatively, smart can take on other meanings that describe someone being witty, saucy or
even rude. “Don’t get smart with me,” is probably something we heard from our parents a few
times during our “know-it-all” years. Today in the age of microprocessors, RFID, proximity chips,
NFC chips, the word smart has taken on a meaning that probably is first to mind compared to years
gone by. It is used to describe forms of artificial intelligence (AI). We are manufacturing products
and packaging giving them an “element” of intelligence. True AI advocates would quickly point
out that this is not really artificial intelligence, because true AI requires complete mechanisms of
thought. This would be considered, “somewhat intelligent.” Regardless of the “level” of
intelligence, the use of these technologies has introduced a level of sophistication beyond anything
we had in the past. In the world of counterfeit deterrence, one must look at “smart technologies,”
but also be smart. Today, there is not a lot of “smart” packaging in the market, though it is
evolving. Use of human intelligence to make decisions about practical and economical ways to
preserve and protect your IP is crucial. The use of modern technology can enhance the level of
sophistication. Every program/product must be evaluated on its own merits. There will be
different solutions that are “best fit” pending the given circumstances of the product, the method/s
of manufacturing as well as the distribution channels. There is no one stop all solution when it
comes to protecting the authenticity of a product. In the following paper, we will try to take an
honest and practical look at the current state-of-the-art technologies in the market place, their
strengths, drawbacks and general costs.

2. Introduction
The International Chamber of Commerce (ICC) estimated that the value of counterfeit goods
globally would exceed $1.7 trillion by 2015. (Hargraves, S.; CNN Money International,
[monograph online] Page 1, September 27, 2012, Available from:
[http://money.cnn.com/2012/09/27/news/economy/counterfeit-goods/] Accessed 7 June 2016.]
That is approximately 2% of the total world’s economic output and larger than many countries
GNP. This is having serious impact on companies’ profits, jobs, good will and government’s
ability to collect taxes. Between October of 2005 and September of 2006, Homeland Security in
the USA made 14,000 seizures of counterfeit products worth a total of $155 million. In New York
city alone, the trade was worth $80 billion and cost an estimated $1 billion in lost sales tax revenue.
[The International Herald Tribune, Counterfeit Goods are Linked to Terror Groups. Page 1,
February 12, 2007] Available from:
[http://www.nytimes.com/2007/02/12/business/worldbusiness/12iht-fake.4569452.html?_r=0]
[Accessed 7 June 2016]
Existing markets vary for several reasons, but two of the most important would be culture and
financial social status. We have seen the emergence of a new middle class in Asia, it is an ideal
time to implement a smart packaging strategy. In China for example, consumers interact with
products in a very different way than the western world. The use of WeChat is very wide spread
and a consumer in China is much more likely to scan a QR code than one in the western world.
There is also a cultural aspect to this. It is well known that more counterfeiting comes out of
China than any other country. In the western world, people are brought up to believe and trust in
products. In China and most parts of Asia, the mentality is the opposite. Supply chains are
infiltrated with counterfeit and the level of “smart” in the packaging for the most part does not
exist. Let’s take a look at an industry, we all came here to discuss and enjoy, the wine industry.
Wine has become an increasingly popular in China. It is a real growth industry and recently there
was a 70-million-euro winery constructed in the Ningxia province. Chateau Changyu Moser along
with other significant investments by LVMH, owners of Lafite Rothschild to produce wine in
China is a clear indication of the potential for the wine market in China. But in a fashion so
common in recent times, these market growth opportunities also come with challenges of how to
protect the investments. China is a very large country and in recent times they have become a very
wealthy country. It is not much of a surprise to think about the wealthy Chinese and how they
want to enjoy the best things life has to offer and even to a degree brag about there wealth. The
ability to “connect” with the western world is thought of as having obtained higher social status.
Western wine drinking has become a key part of this. But with that comes another challenge, the
Chinese are very “fickle” in their choices of wine. They will switch from one brand to another
providing no real brand loyalty. Online shopping allows them to source and purchase budget
wines. Internet purchases are increasingly common and contribute to the ease of “attracting”
unscrupulous businesses that are able to offer very attractive deals such as low prices, fast
deliveries and other advantages that seem too good to pass up. Often they are no more than cases
of fraud and sales of counterfeit wines.

3. Doing business in China – like all cross border commercial activities, carries certain risks that
Australian companies might not be aware of. These include:
 Commercial Fraud
 Breaches of Contract
 Intellectual property infringement and theft
 Bullying, intimidation and threats to physical safety.
 Restrictions on movement
 Criminal charges for engaging in activities that may not constitute crimes under Australian
law.
Australian companies should spend time investigating the market, obtain professional advice and
conduct thorough due diligence before establishing business relationships.
[Australian Trade and Investment Commission; Export Markets China] Available from:
[http://www.austrade.gov.au/Australian/Export/Export-markets/Countries/China/Doing-
business/Business-risks] [Accessed July 5, 2016]
In 2012, China imported approximately 68 million gallons of wine worth over $1 billion dollars!
This placed China as the 5th largest importer of wine in the world, ahead of the United Kingdom
and many other large wine drinking nations. [The Wine Cellar Insider, Massive Counterfeit Wine
Ring Busted with 7000 Fake Cases Available from:
[http://www.thewinecellarinsider.com/2013/08/massive-chinese-wine-counterfeiting-ring-
busted-7000-fake-cases/] [Accessed June 25, 2016]
Wine exports to China have increased by more than ten-fold since 2006 as rapidly increasing
wealth transformed lives and tastes in the world's fastest growing major economy. More than half
of the 2012 total - 139.5 million liters - came from France. The iconic Chateau Lafite has become
the poster child for wine forgery. A bottle of Lafite from 1982, considered one of the greatest
vintages of the 20th century, can cost upwards of US $10,000. That has led to a thriving industry
in Lafite knockoffs in China. Aficionados say there is are more cases of 1982 Lafite in China than
were actually produced by the chateau that year. Christophe Salin, president of Domaines Barons
de Rothschild, which owns Lafite-Rothschild, says fake Lafite however isn't the major problem.
"I have never seen a bottle of fake '82 Lafite," says Salin, who has been travelling to China for 20
years. "The problem we have is the creative attitude of some Chinese. They sometimes use our
name in funny ways," he told Reuters in a telephone call from Paris.
Nobody knows how much of the market is cornered by fakes and copycats, says Jim Boyce, who
follows China's wine industry on his blog, grapewallofchina.com. Several wines on the market
are branded with names close to Chateau Lafite, including "Chatelet Lafite". Chatelet is the name
of one of the busiest subway stations in Paris. Lafite "is such a generic brand in China that it has
widespread appeal as a name and as a status symbol," says Boyce. The mystique extends beyond
the wine -- in Beijing there is a "La Fite British Exotic Bar" and the "Beijing Lafitte Chateau
Hotel." The first step for anyone counterfeiting wine is to find or manufacture a bottle that is close
to the original. "People will also use real bottles with something else inside, or make labels that

4. are spelled differently," says Cheng Qianrui, wine editor for the Chinese lifestyle website Daily
Vitamin. "If you know wines, you can tell, but not a lot of Chinese do."
The copyright problems however tend to focus on the better-known marques. Importer Torres
Wines includes Chateau Mouton-Rothschild, another top-ranked Bordeaux, in its portfolio. Sales
Director Sun Yu says phony wine brands such as "Mouton & Sons" or "Edouard Mouton" pop up
in the Chinese market. "It happens in secondary or third-tier cities where they don't have much
wine knowledge," Sun says.
Elite wine makers are trying to fight back, sometimes by smashing bottles after tastings, to prevent
their being refilled for resale. Anti-counterfeiting measures by major international spirits brands,
which also fall victim to fakes in China, include bottle buyback programs, tamper-proof caps and
covert tagging of bottles. But such measures are less common with wine brands, according to an
executive at an international beverage company in China. Domaines Barons de Rothschild has
been putting tamper-proof tags on bottles of Chateau Lafite and its second label, Les Carruades de
Lafite, since the 2009 vintage. But the producer has been protecting its elite bottles since 1996,
company president Salin says, with four other identification techniques that he won't reveal. "If
you show me a bottle of Lafite, I can instantly tell you when it was bottled, a lot of things," he
says. "To counterfeit it is not easy."
[Reuters – Life June 9, 2013 Fake Wine More Worrying than Tariffs; Terril Yue Jones] Available
from:
[http://www.reuters.com/article/us-china-wine-fakes-idUSBRE95801Q20130609]
[Accessed July 3, 2016]
At least half the Chateau Lafite sold in China is fake and, like other high end Bordeaux
counterfeits, probably made on boats moored in international waters off the mainland coast, a
senior Chinese government official has said. Over the last few years, China has become the biggest
market for Bordeaux’s wines, accounting for almost of 20% of the area’s wine exports by volume
in 2013. Although Li said he had no idea how many boats were used as faking stations, he
described their existence as one of the most shocking aspects of the counterfeiting sector. Their
modus operandi is to use low-end wine to make high-end fakes for exorbitant profit, he said.
[http://www.decanter.com/wine-news/fake-bordeaux-in-china-being-made-on-offshore-boats-
says-official-13036/#6cdx47XUmWgMY1Bk.99] [Accessed July 1, 2016]
In July of 2013 an investigation lead to the arrest and confiscation of over $32 million dollars of
fake wine by the Yantai police. In dollar value, this could be the largest bust of its kind in China.
Some of the wines being counterfeited were Chateau Lafite Rothschild, Chateau Latour,
Chateau Mouton Rothschild, Chateau Beychevelle, Chateau Pichon Baron, and other famous
brands. A small French brand, Rafi was also being counterfeited by the same team of suspects as
well. This investigation and arrest follows a July, 2013 meeting in Beijing with representatives
from the EU where an agreement was produced to increase efforts to bring down the rampant
amount of wine counterfeiters operating in China.
In the raid, police found the supplies needed to make counterfeit wines, rolls of labels, bottles,
corks etc. At least 10 suspects were arrested. More than 40,000 bottles of fake wine were seized

5. in the raid. The suspects were reportedly buying inexpensive wine and placing it into bottles of the
famous and expensive, counterfeit brands they were selling The suspects are thought to have been
selling the wines in various popular Chinese cities like; Shanghai, Beijing, Tianjin, Shanghai,
Guangzhou, Qinhuangdao, Dongguan, Shenzhen, Suzhou and Nanchang.
This was not the first time a ring of this size was discovered. Previously in 2012, an operation
discovered counterfeit wine totaling $1.6 million including 350 cases of fake Chateau Lafite
Rothschild and 60 cases of fake Chateau Margaux along with others. The exposure to the
opportunities that come with a growing market make wine a natural target.
[http://www.thewinecellarinsider.com/2013/08/massive-chinese-wine-counterfeiting-ring-
busted-7000-fake-cases/]
Authentication Technology in the Market Today
Technology continues to evolve as we all know. “Outside influencing” technologies are having a
major impact on the market as well. What is an example of this? The modern cell phone or as
often referred to, the “smartphone.” The smartphone has taken on so many forms of functionality
and is having a major influence in many areas, including authenticity. We all have experienced a
major change in our lives from advancements in cellular technology and no doubt, this will
continue for years to come. There are several companies developing technology that utilize the
smartphone to perform an authentication aspect for brand protection. YPB is in the process of
developing and commercializing a nano-technology that will become a benchmark of future
smartphone authentication. This technology will be discussed a further, but let’s examine what is
the current technology and state-of-the-art. There are far too many technologies with “marketing
names” to individually list them in this paper, so let’s try to categorize the technologies and then
examine a few of them to get a general understanding of what the market has to offer. The
technologies today that would form a part of a smart solution would fall into one or more of the
following categories:
1. Conventional Design with/without Security Graphics
2. Manufacturing Technologies
3. Cloud/Server Based Technologies
4. Pattern Recognition Technologies
5. Serialization Technologies
6. Electronic Chip Technologies
Let’s take a look at some examples of technologies in each of the above categories and define them
a bit more specifically with some visuals and explanations about the technologies.
Conventional Design with/without Security Graphics
For purposes of clarity, conventional design would be defined as the design elements that one
would normally see in packaging. These are the least expensive of the design elements in most

6. cases. These design elements include graphics that are created to attract the consumer. They are
carefully selected and placed into a design to market the brand, to portray good aesthetics, attract
our senses and give harmony to the product and instant recognition to the brand. Brands will often
have guidelines on how the elements are to be used and what PMS (Pantone Matching System)
inks are to be used. These may be referred to as the “corporate colors” so that any package stays
consistent wherever it might be printed. Here is an example of a design guideline:
Black AMD Green
Spot Color
(Multi-ink printing such as: business cards, letterhead, etc.)
AMD Green = Pantone 347 Black = Black

7. These type elements would normally be considered conventional design elements, not security
elements, however even with conventional graphics there are techniques that can be utilized to add
security to conventional design elements. We will discuss that in the section covering forensics
of design. Let’s take a look at security elements that are used in some designs. Adopting a design
with forms of security graphics and/or materials will generally increase costs by 10% over
conventional materials and graphical designs.

8. Here is a pharmaceutical product from China that utilizes some fine guilloche patterns in a mix
of colors to provide an authentication element.
Here we see another pharmaceutical product with elements of security design mixed with a
manufacturing technology, a “windowed thread.” This is actually a common feature found in
many banknote papers.

9. Manufacturing Technologies
Moutai Liquor - China
These images are from the product Moutai, a very popular white spirit alcoholic drink in China.
On the front of the Moutai bottle, we see the use of Intaglio printing and a security label that is on
the neck of the bottle. The security label uses a technology based retro-reflective images. A hand-
held viewer is supplied by the manufacturer to authenticate the label. The intaglio printing process
is considered to be the most secure printing process available and the choice of every central bank
in the world for production of currency. In the case of intaglio printing, the design is using security
elements from an engraving, not conventional process colors of cyan, magenta, yellow and black
(CYMK) half-tone dots. The area of the picture is referred to as a vignette. It is very similar to a
portrait engraving such as you see on most all banknotes.
Inside the Chinese character, you see “cross-hatched” lines. This is another technique that is often
deployed in large areas that would otherwise be “solid” if printed conventionally. The cross-
hatching is actually a technique that is used when printing intaglio to keep the ink in the plate
during the wiping process. Without these cross-hatched lines, one can run into printing problems
with voids created in the finished print due to the ink being wiped out of the image area prior to
transferring onto the paper.
Another distinguishing characteristic of this process is the “relief” or tactility that one can feel in
the label. Intaglio printing is a process whereby the paper is forced up into the printing plate and
the ink is literally “pulled out the printing plate” leaving a relief image on the paper. This can
easily be felt by running your fingers across the surface. It is not a smooth surface, but a raised
surface.

10. Looking at the back label on the Moutai bottle, we see further use of intaglio printing and a design
element called a latent image. The “MT” shown below is only viewable when the label is titled
and held between the viewers’ eyes and a light source. The “raised surface” and the use of lineal
elements running at oblique angles to one another allow some areas to reflect off the surface to the
eye, while other areas reflect off the surface, but can’t reach the eye due to the ink acting as a type
of “wall” or barrier to the incident light.
These design elements are security elements. We see in this label shown enlarged below:
microtext, guilloches, line modulation and the formation of the latent image, as described earlier.

11. Here we have two more examples of intaglio printing on the labels of two French wines. In each
case, the use of a fine vignette forms an integral part of the design element. The use of specialized
printing technologies or holographic technologies will add cost to the labels or packaging.
Volumes play a key part in pricing, but in general these specialty manufacturing processes will
add 10-15% to the cost.

12. The use of holography in packaging is also a manufacturing technology that offers some
authentication value, though holography is also used to attract consumer’s attention. It can be
argued that holography is more valuable as a marketing technique than an anti-counterfeit
deterrent. Here you see some examples of holography in packaging including the use of Fresnel
lens technology, a rarer form of holography that have far more limited sources for manufacturing
than conventional forms of holography.
Here is a combination of manufacturing security technology and conventional design elements as
was produced for Kodak in China. In the foil area, a micro embossing has been used to create
optical movement in the foil. The word “Kodak” will change from a positive to a negative image
as you tilt the box back and forth.
Foils such as shown in the Kodak box make ideal points for adding covert tracer technology. The
foil can be manufactured using technology that allows for the authentication of rare earth
inclusions that are not visible with UV or IR lights. The tracer materials can be authenticated with
hand-held readers. An additional product feature is the capability to integrate a brand logo and/or
brand name in the foil that can only be authenticated in a forensic environment.
Flexible Examples
• Developing applications
• ‘Bold’ old
• Toothpaste tubes new
confidential

13. Cloud/Server Based Technologies
The technologies used in platforms that are based on cloud or servers are most often combined
with either serialization or pattern recognition. In cases of serialization a random generated
number or a sequential number is produced and added to the product in some material form. It
could be a label, ink jet printed directly onto the product/package or laser etched onto the product.
The “authentic numbers” are a known entity and stored in the cloud or server. The authentication
process involves reading the number, normally with a smartphone and then sending it to the
cloud/server for authentication. This is a very general and simplified explanation. Pending on the
specific technology, the codes can be encrypted or require a custom reader or APP (smartphone)
in order to be scanned. These type technologies are generally associated with a royalty cost and
vary from company to company.
This is an example of a cloud/server based serialization matching technology. The QR Code is
scanned and sent to the cloud/server and the product is authenticated by a previously known set
of numbers. If the consumer does not have a QR Code scanner application, an alternative is to
enter the 12-digit string of numerals at the website of the technology provider.

14. Here are some additional examples of serializaton matching technology that can be either cloud
or server based. The 2D barcode serves as a “pointer” and sends the person to a link on either a
cloud or server where the number is retrieved and allows the user to authenticate it. These
technologies may have custom APP’s associated with them or they may work with any standard
2D scanner.
The cloud/server based technologies must also use an element of “smart” in designing the
authentication methodology. In the introduction section of this paper, Christophe Salin, president
of Domaines Barons de Rothschild is quoted as saying, "The problem we have is the creative
attitude of some Chinese. They sometimes use our name in funny ways." It is also well known
that there has been more than one case of the Chinese using a fake web site with a pointer and
name that may be off by a letter off or spelled slightly different to take an authentication attempt
to a site that will authenticate the counterfeit product.
Pattern Recognition Technologies
Another form of cloud/server technology is pattern recognition. Actually, pattern recognition
technologies can be cloud/server based or self contained for authentication directly from
information on the product itself. For example, if a label contains a graphical element that is
scanned, a readout could be generated that matches a serial number in some other place on the
label. There is no need to go to the cloud/server in this case. More advanced methods of
cloud/server authentication involve scanning on a production line, capturing images, reducing file
sizes and sending them to the cloud/server for future authentication using pattern “matching” or
recognition.
Here is an example of pattern recognition technology. The label on the neck of the bottle contains

15. a pattern of random “bubbles” that has been uploaded to a server/cloud. The 2D barcode is scanned
by the consumer and it brings up the image of the bubbles. The consumer is then required to look
at the label on the bottle and compare it with the picture on the screen of his phone or computer to
manually make the authentication.
Here is another form of pattern recognition technology, but this one is a bit more sophisticated
and automated. The graphics going around the outside of the label actually form a custom font.
This technology requires production line scanning. The image is captured as a fractal image
meaning the font, 2D code and every other graphical element is being captured in a 3D frame
grab. The images are captured along with the fiber pattern that is in the paper or substrate
underneath the image. At the point of authentication, an APP is used on a smart phone to capture
and send the image to the cloud for an automatic pattern match with the image captured at the
point of manufacture.
Serialization Technologies
Serialization Technologies are the monitoring tools in the form of numbers or code system that is
widely used to indicate and identify the product. An example of serialization such as the lot number
and serial number are frequently found today in pharmaceutical products. They are mostly found
on the packaging making it very useful for the purpose of supply chain security. The tracking and
traceability of the product and packaging can be done from the manufacturing process until the
products are in the end-customer/user’s hand. In efforts to minimize the risk to counterfeiting and
adulterated drugs, many national regulators have developed serialization methods for supply chain
security. A complete serialization program represents the history of a given product much like a
chain of custody would provide a complete accountability for evidence. Serialization allows a
manufacturer to track product from manufacturing through to the final product dispensing.
Pharmaceutical manufacturers have invested in ways to uniquely serialize each unit and to register
relationships such as parent/child units into larger packages, cases, cartons and even up to pallet
level. Serialization information is very dependent on the many different national laws and
standards. There are many programs already being implemented in Europe and the United States
as the pharmaceutical industry is now coming under legal deadlines to control the complete supply
chain.
TraxSecur™Direct Print with Serialization Info
TraxSecur™direct print with serial information:
• Easy detection/deterrence of fraudulent change
to serial info
• Optimized for delivery simultaneously with serial
information print/validations
• Integrated code life-cycle management in
IN2trace serialization framework
TraxSecur™full frame
– for static pre-print or
variable printer
TraxSecur™machine
code frame – best for
saving space with
variable printer

16. There are 2 types of the serialization, random and sequential code.
1) Random code is the randomized number (Algorithm). One of its applications is
protected identification (limited access code) because it is unpredictable.
2) Sequential code is an ordered running number. It’s for unprotected identification.
Serialized numbers and the other data can be encoded into a barcode. There are many systems and
barcode technologies (symbologies) presently available that will facilitate track and trace systems
including the benefit of brand identity. Serialization can be the intermediary between the brand
owner and their customers.
Types of Barcodes
1) 1D Barcode (Linear code)
This is a first generation symbology that is made up of lines and spaces of various
widths that create specific patterns. These codes are defined by standards that are in
the public domain.
2) 2D code (Matrix)
There is two-dimensional symbologies that represent information and contain
greater amounts of data than 1D symbologies per unit area.
Code128
Universal Product Code
EAN 5
EAN 2
QRcode
(general used)
Datamatrix
(Industry)

17. The barcode technologies are constantly evolving. They are being developed to have more
capacity and contain more data. In terms of anti-counterfeiting solutions, they are normally used
in combination with the other authentication solutions as a part of a track and trace system for
supply chain security providing a much stronger solution.
Electronic Chip Technologies
One of the increasingly interesting areas in chip technology is Near Frequency Chips (NFC).
These proximity chips evolved from radio frequency identification or RFID chips. The technology
is really quite simple. The NFC chip operates as a part of a wireless link. Once it is activated by
another chip, small amounts of data can be shared between the two devices. They do not have to
be in contact with each other, but they do have to be within a few centimeters of each other. In
this manner, technology is enabled in close proximity and one can communicate without the need
to have an internet connection. It is very easy and fast to use. No pairing code is necessary to link
up and because it uses chips that run on very low amounts of power (passive using even less) it is
much more power-efficient than other wireless communication technologies. NFC identifies us
by our enabled cards and devices as well as our bank accounts and other personal data. The
associated cost with high volumes of perhaps a million or more on chips such as NFC are going to
add cost in the range of US $0.07 - 0.09 per label or package. While this may be viewed as
expensive, the added applications and benefits that can be derived are numerous.
Virtually every mobile OSmaker has their own apps that offer unique NFC functionality. Android
users have the widest variety to choose from. Users have Google Wallet, which accesses your
funds for contactless payments. Samsung Pay, which operates similarly, is also available.
Apple's iPhone 6 and iPhone 6 Plus received NFC functionality, though with limited use thus far,
only for Apple Pay. It's a lot like Google Wallet, in that it's an APP which gives users the ability
to pay for goods and services at participating retailers. For people who prefer Microsoft's
Windows Phone, they will be able to use Microsoft Payments.
Passive NFC 'tags' are being built into posters and informational kiosks to transmit additional
information similar to how scanning a QR code can trigger launching a web address, offering a
discount coupon, or a map to download on your smartphone. A clever use of NFC is combining
it with packaging to engage the consumer and gather valuable market information about the
customer base. YPB’s platform including nTouch, with consumer engagement and many other
functionalities such as track-n-trace is leading the way in this market segment.
Since NFC occurs in the free and open air, one can easily be concerned about the security aspect
of data. It is easy to get caught up in the idea that your data can be stolen or “skimmed” by anyone
who tries to intercept it. Technically it can happen, but it is not difficult to prevent and with a bit
of effort, one can eliminate the chances of being skimmed. First, you must consider that the NFC
chips in your cards or phones can't be skimmed unless they are within mere centimeters of a would
be thief. There are those that are out there and may try to use a skimming APP to capture your
personal information, including your address and account details. But this is getting more and

18. more difficult, as APPS like Apple Pay and Google Wallet are implementing some clever
safeguards to protect users.
According to information from Apple, their APP for e-commerce, Apple Pay, stores payment
information on only the device, encrypting the card information only for use by the merchant and
payment network for verification. The information is not in the cloud, nor does it reside in the iOS
source code. You can erase your precious financial transaction information manually using the
"Find my iPhone" feature.
Google utilizes SSL (secure socket layer) technology to protect your financial information on
Google Wallet. They recommend a very practical approach in making sure your details stay safe:
the use a passcode for your phone. Additionally, the NFC antennae in Android phones is only
activated when the screen is both on and unlocked. If you're using a credit or debit card with NFC
capabilities, you should protect yourself by getting an anti-skimming sleeve to go over your card.
These deflect radio frequencies from attracting your card's NFC chip.
Using Forensics as a Key Element in Smart Packaging
Part of any “smart packaging” effort should include features that are designed intentionally to be
authenticated in a forensic environment. It is not difficult to incorporate elements of forensics that
are totally covert to the consumer and don’t pose any problem for the marketing teams. These
features can become key in legal proceedings or final determination on whether a product has been
counterfeited. Designing with forensic elements serves as a backup should internet connections
be unavailable. One “creates” the ability to authenticate product when necessary using hand-held
instruments in the field or laboratory instruments if necessary.
Let’s take a look at a couple of ways in which forensics might be added to product packaging
without any impact on the way the marketing team has designed portrayed the brand image. To
demonstrate this conceptually, we will use a current design of Diageo’s Johnny Walker Blue Label:

19. This illustration shows the use of a tracer technology that can be used in most any material. In
this case, the gold ink and the gold capsule on the bottle has had tracer added to it. The tracer is
detectable by a hand-held reader.
2nd Level feature detects tracer 3rd Level feature “image”
In another example shown above a further “level” of sophistication is added. A “2nd level” covert
feature is detectable with a hand-held reader, but it does not detect the presence of an image. This
is referred to as a “3rd level” feature. The Johnny Walker logo is manufactured covertly in the foil.
This feature can detected by laboratory device using a mouse connected to a Videoscope and/or a
spectrophotometer using wide field IR illumination.

20. Under White Light Under IR Illumination
This design feature is very effective forensic feature. It is based on the use of IR matched pairs or
IR matched inks. Visibly, there is no difference in the appearance of the label, but under IR
examination, the area of the “JW” drops out providing clear forensic evidence of the genuine
product.
Under

21. In the illustration above, a 2D barcode with serialization is utilized to make an authentication via
the cloud or a server. This could also serve as a starting point for a track-n-trace platform which
provides many benefits for the brand owner such as marketing, geo-location, and consumer
engagement etc. For the consumer, it is authentication and a link to the brand website where other
benefits may be derived.
Designing and Implementing True Smart Packaging
Smart packaging today is much more than just being “wise” about choices. Today, with the use
of the smart phone, there are many additional ways to protect and monitor your products. Track
and trace, temperature and exposure to climate changes, authentication of various physical security
features, chip (NFC) authentication and consumer engagement. The ability to gather information
from your customer base brings an added dimension to smart packaging.
If we are to preserve authenticity and protect brand owners from would be counterfeiters, the use
several of the techniques discussed in this paper are highly advised. With the conventional means
of protecting product, which forms one of the three pillars of “smart packaging” (Protect), the
brand owner establishes the means to authenticate. In many countries, the USA included, if a
brand owner has not taken the initial step to add some “protection” technology the ability to defend
your brand in a court of law can be seriously diminished. Another aspect of the conventional
means of protecting your product is the ability for “back up.” What is meant by this term is the
use of security technology in the materials so that authentication can be made in the event a
computer chip is damaged or the Cloud/Server can not be accessed to use a smart phone based
technology. This can happen and if a brand is putting all their “eggs in one basket” so to speak,
one could easily find product that can’t authenticated simply because a chip can’t be read or the
internet is down. This is the reason we will never see an ID card or Passport issued with just a
chip. It might be secure enough in an ideal environment, contain encryption etc., but electronics
can be damaged; they can fail. There needs to be a secondary or backup method to authenticate.

22. Moving to the second pillar of “smart packaging,” (Detect) the brand owner is provided with the
tools to authenticate the products. The detection of tracers, security features, manufacturing
technologies is all a key part of building a sound deterrence against the counterfeiters. With the
advancements made in the cellular telephone and continued evolutions of the smartphone, this will
become a key part of the second pillar in the future. We see forms of it already happening in the
industry.
The third pillar of a sound “smart packaging” strategy is the consumer engagement (Connect).
There is added value and benefit to engage the customer. The ability to understand your customers,
their needs and satisfaction levels is going to help a brands business to grow. It is not just the
prevention or detection of counterfeit product alone, but the “connect” becomes a key part of a
brand manager or senior managements ability to make sound business decisions about where to
invest and what products to bring to the consumers. In addition to the positive points, if the
occasion arises where there are complaints, it gives first hand information and feedback on quality
issues, so they may be addressed in an expedited fashion. The consumer ends up with a very
positive experience and the brand image grows as they share their satisfaction on the many social
networks in use today.
Choosing a company with a diverse technology portfolio including a range of services and
technology covering all the key elements of brand security and consumer engagement is key to
preserving authenticity and protecting the brand.